DoubleDragon IPO price set at P2 per share

ABS-CBN News

MANILA, Philippines – DoubleDragon Properties Inc. has set the final offer price for its planned initial public offering (IPO) at P2 per share.

The property firm, owned by Jollibee Foods Corp. chairman Tony Tan Caktiong and Mang Inasal founder Edgar "Injap" Sia II, will raise as much as P1.16 billion in proceeds from the sale of 579.73 million primary shares based on the offer price.

The proceeds from the IPO will primarily be used to develop community mall chain CityMall and to purchase new properties that can be developed into future residential and commercial projects.

BDO Capital & Investment Corp. president Eduardo Francisco said the issue was 14 times oversubscribed, which indicates strong interest from local investors.

BDO Capital is one of the underwriters for the property firm’s public offering.

The offer period will be from March 25 to April 1 while listing date has been tentatively set on April 7.

DoubleDragon’s offering is the country's first IPO for 2014.

The property firm plans to build 100 community malls worth over P24 billion over the next five years.

It is also planning to put up three office towers which will be leased out to corporate and business process outsourcing tenants in the next six years in Metro Manila.

DoubleDragon is the second joint venture by Sia and Tan Caktiong after Jollibee acquired 70% interest in Mang Inasal for P3 billion. Injap’s company retained its 30% stake in the grilled chicken restaurant chain.